Cylinder recirculation model: Groups demand compensation or 10 years transition period

Some key stakeholders in the Liquefied Petroleum Gas (LPG) value chain have beseeched the government to compensate them by valuing their existing plants including every piece of equipment, vessels and the over 600 trucks currently involved in transporting LPG across the country and pay the relevant compensation to their owners.

This follows the National Petroleum Authority (NPA)’s plan to commence the Cylinder Recirculation Model (CRM) implementation with the full value chain of the model which would involve the filling of domestic cylinders with LPG at the Bottling Plants and the distribution of the same to LPG consumers at Cylinder Exchange Points (CEPs).

The Authority plans to begin the main CRM implementation in Accra and the Ashanti region as phase 1 in September 2022 and then extend the implementation to the other regions across the country in phases.

In the event that the compensation option could not be fulfilled, the stakeholders have demanded a transition period of not less than 10 years during which the Cylinder Recirculation Model (CRM) and their existing refilling
plants would operate side by side or concurrently.

“That way, we hope to be able to fulfil our obligations to financial institutions and other creditors. This would enable a smooth and gradual transition by industry and the consuming public in general,” the stakeholders said in a statement signed and issued in Accra on Monday, July 17.

The stakeholders are the LPG Marketing Companies (LPGMC), Ghana LPG Operators Association (GLIPGOA) and the Gas Tanker Drivers Association (GTDA).

Read the full statement from the NPA and the stakeholders below

LPGMC GLIPGOA GTDA Position on CRM_230720_095346

NATIONAL PETROLEUM AUTHORITY

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